Earnouts are a dangerous game, especially when we're at the crossroads on a

Oct 21, 2020
11:12:44am

Hodor Truly Addicted User

bunch of macro factors. They're especially problematic if the acquirer is a strategic (rather than financial). Lots of potential issues regarding control, competition for resources within an organization, pricing, etc.

Report problem with this ad

Hodor

Bio page: Hodor
Joined: Jul 18, 2016
Last login: Apr 5, 2021
Total posts: 2,209 (64 FO)

Report problem with this ad

Messages

Author

Time

POLL: What would you do in this scenario? Sell business now or hold? Asking for a friend.

Tonto

10/21/20 10:36am

If Bill sells, what is he doing for work for the next 20 years?

blackandblue

10/21/20 10:39am

This. Selling business doesn't have to mean retiring. With significant new risk on the horizon, cash in now if the price

scootsy

10/21/20 10:42am

He'd probably stay at the company that buys him out for 10-15 years.

Tonto

10/21/20 10:42am

Should also add company buying is a large publicly traded company.

Tonto

10/21/20 10:45am

If Bill has partners in the company, how do they play into this? Are they ready

blackandblue

10/21/20 10:49am

All are leaning toward option 1. Taking the money now and betting on being

Tonto

10/21/20 11:14am

If that’s a unanimous decision, I’d do it. But I’d start making some solid

blackandblue

10/21/20 11:18am

RE: POLL: What would you do in this scenario? Sell business now or hold? Asking

Y-Zag

10/21/20 10:40am

If he's not feeling like taking the company to the next step and the risks

BYUHawk

10/21/20 10:54am

Option A is a good one but he needs to be aware that the return is small. That

Idahofallsblue

10/21/20 10:58am

Earnouts are a dangerous game, especially when we're at the crossroads on a

Posting on CougarBoard